06, March 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

Running through standard Ichimoku check-lists we can see that the correction seems to be over and the pair resumed to the downtrend or at least made an attempt to go down. At the moment the pair is testing the lowest limit of this year support zone 1.30-1.37.

We have a confirmed sell signal. The Chinkou Span is below the price, the pair is trading below the Ichimoku cloud. The northern movement will continue as long as the price is below the Kijun-Sen (1.3063). The trend will remain bearish at least this week.

The first target is the support level 1.300. The price has already tested it. Should the pair consolidate at it the downtrend will be continue to the level 1.2940.

The Chinkou Span is below the price chart.

Bollinger Bands are going down its bands are narrowing.
MACD also confirms the downward movement. The market is looking bearish.

Trading recommendations

In general the downward trend continues, the price may test the strong support levels near 1.2875.

Short term forecast is to go short. The first target is 1.2940. Should the pair overcome this level the price will go to 1.2895.

When opening orders you should consider the fundamental news and the time of its release.